The Federal Financial Institutions Examination Council
(FFIEC) today announced the availability of data about 1998 mortgage lending
activity in metropolitan areas and released analyses of nationwide summary
statistics regarding lending patterns. The nationwide summary statistics
are attached to this release; the following provides a general overview.

The data reflect lending activity for 7,837 institutions,
both depository and non-depository, that are covered by the Home Mortgage
Disclosure Act (HMDA) and that reported data to member agencies of the
FFIEC--the Federal Deposit Insurance Corporation, Federal Reserve Board,
National Credit Union Administration, Office of the Comptroller of the
Currency, and Office of Thrift Supervision--and to the Department of Housing
and Urban Development (HUD).

The 1998 data include 24.7 million reported loans
and applications, an increase of about 50 percent from 1997, resulting
primarily from a very large increase in refinancing activity (table
1). The number of home purchase loans extended in 1998 compared with
1997 increased 21 percent for Native Americans, 16 percent for Hispanics,
13 percent for Asians and Whites, and 9 percent for Blacks. During the
six years from 1993 through 1998, the number of home purchase loans extended
has increased 87 percent for Hispanics, 72 percent for Blacks, 52 percent
for Native Americans, 46 percent for Asians, and 31 percent for Whites
(table 7). (The period 1993-1998 is used
because HMDA coverage was expanded in 1993 to include a significantly
large group of independent mortgage companies.)

The number of home purchase loans extended to applicants
in all income categories increased in 1998 compared with the prior year.
The number of such loans extended in 1998 to applicants with incomes less
than 80 percent of the median family income for their metropolitan statistical
area (MSA) increased 19 percent over 1997. During the same period, applicants
with incomes of 100-119 percent of their MSA's median experienced a 15
percent increase, while 14 percent increases were experienced by applicants
with incomes of 80-99 percent and 120 percent or more of the median (table
7).

During the six years from 1993 through 1998, the
number of home purchase loans extended to applicants with incomes less
than 80 percent of the median increased 64 percent. During the same period,
applicants with incomes equaling or exceeding 120 percent of the median
experienced an increase of 45 percent. Applicants with incomes of 80-99
percent and 100-119 percent of the median experienced increases of 42
percent and 37 percent respectively (table 7).

A significant minority of home purchase loan applications
in 1998 was for government-backed loans; the majority was for conventional
(non-government-backed) loans (table 2).
The number of government-backed loans extended to Native Americans increased
34 percent in 1998 compared with 1997. The number of such loans extended
to Hispanics increased 9 percent over the same period, while Whites, Blacks,
and Asians experienced increases of 5, 3, and 1 percent respectively (table
6).

The number of government-backed home purchase loans
extended to applicants in all income categories increased in 1998 from
1997 levels. The number of such loans extended to applicants with incomes
of less than 80 percent of their MSA's median increased 9 percent, compared
with increases of 4 percent for applicants with incomes of 100-119 percent
and 120 percent or more of the median. Applicants whose incomes were 80-99
percent of the median experienced a 3 percent increase (table
6).

The number of conventional loans extended to Hispanics
and Native Americans increased 22 and 17 percent, respectively, in 1998
compared with 1997. The number of conventional loans extended to Asians
and Whites increased 15 percent over the same period, and the number of
such loans extended to Blacks increased 13 percent (table
5).

The number of conventional home purchase loans extended
to applicants in all income categories increased in 1998 from 1997 levels.
Applicants with incomes less than 80 percent of the MSA median experienced
an increase of 25 percent. Applicants with incomes of 80-99 percent and
100-119 percent of the median experienced increases of 20 percent, while
applicants whose incomes equaled or exceeded 120 percent of the median
experienced an increase of 16 percent (table
5).

Denial rates for conventional home purchase loans
in 1998 were 54 percent for Black applicants, 53 percent for Native American
applicants, 39 percent for Hispanic applicants, 26 percent for White applicants,
and 12 percent for Asian applicants (table 3).
These rates were marginally higher than in 1997 for each group except
Asians, for whom denial rates fell.

The overall denial rate for conventional loans was
29 percent in 1998. This rate has increased from 17 percent in 1993. Analysis
of HMDA data alone is not sufficient, however, to determine whether this
and other observed patterns in mortgage lending and denial rates result
from market forces, changes in underwriting practices, illegal mortgage
discrimination, or differences in mortgage loan growth among states and
MSAs.

The disclosure statements underlying the statistics
presented above and in the attached tables are available for public inspection
at central depositories throughout the nation. The disclosures include
individual financial institutions' disclosure statements and aggregate
data for each MSA. (The location of the central depository for an MSA
can be obtained by calling the FFIEC at 202/634-6526 or by visiting the
FFIEC Web site (www.ffiec.gov) at this
page: www.ffiec.gov/hmda/centdep/main.cfm.)
In addition to the disclosures available at central depositories, HMDA
data are available from three other sources: at offices of lenders subject
to HMDA, directly from the FFIEC in Washington, D.C., and at the FFIEC
Web site at http://www.ffiec.gov.

The FFIEC makes HMDA data available in various formats,
including paper, magnetic tape, CD-ROM, and at the FFIEC Web site. Tables
showing the nationwide aggregates and key demographic information for
MSAs can be obtained in paper form. The data for all individual loans
and applications, submitted by the reporting institutions, are available
on CD-ROM and magnetic tape. An order form, with descriptions of the various
reports and formats available, is attached to this release.

The HMDA reports contain data about loan originations,
loan purchases, and applications that did not result in a loan; and they
give information about three characteristics of applicants or borrowers:
race or national origin, sex, and annual income. For most loans relating
to property located in MSAs, as well as some loans relating to property
located outside MSAs, the reports identify the geographic location, usually
by census tract.

The HMDA data also include information on loans that
are sold, showing the type of purchaser of the loan. Among other things,
this information is used by HUD in assessing the performance of Fannie
Mae and Freddie Mac in meeting their legislatively mandated affordable
housing goals.

The FFIEC also provides data on mortgage insurance
applications. Data from the nation's eight private mortgage insurance
(PMI) companies were compiled under the auspices of the Mortgage Insurance
Companies of America, and are available at individual PMI companies, at
the central depositories in each MSA, and from the FFIEC.